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ALSCON: BFIGroup to Pay $41m July 8 From Cletus Akwaya in Abuja BFIGroup, the new core investor to the Aluminum Smelter Company of Nigeria (ALSCON) Ikot Abasi, Akwa-Ibom state may commence payment for the company 's shares July 8, with an initial payment of $41 million. The amount represents 10 per cent of the bid price of $410 million offered by the American company for 77.5 per cent Federal Government equity in the aluminum plant. A source close to BFIGroup told THISDAY yesterday in Abuja that the payment will be made to the Bureau of Public Enterprises (BPE) by BFIGroup's team led by Dr. Reuben Jaja, President and Dr. Babacar Ndiaye, past President of the African Development Bank (ADB) and a member of the company, both of who will lead a delegation of the BFIGroup to Nigeria to make the payment. The planned payment, it was learnt, is in line with the ground rules of the transaction outlined by the BPE which stipulate that a new core investor would pay 10 per cent of the approved bid price within 15 days of being named core investor by the National Council on Privatisation (NCP) while the balance will be paid in the next 90 working days there after. Details of the payment schedule are among other issues contained in the share purchase agreement due be signed between BFIGroup and BPE. It was also learnt that BFIGroup would be required to dredge the Imo river which wills provide harbour and maritime services to the plant among other issues. The signing has been delayed due to the core investor's alleged request to properly study the contents of the agreement before singing, a source at the BPE explained. BFIGroup won the bid to take over controlling interest in ALSCON June 14, when the financial bids were opened by the technical committee of the National Council on Privatisation(NCP) in Abuja. The second bidders, Rusal(Bratsk) Aluminum of Russia was however, disqualified for making a conditional bid of $205 million. The conditional bid was to pay the money in installments upon execution of the share purchase agreement , a situation Mr. Akin Kekere-Ekun, Chairman of the committee said ran foul of the rules already made available to the bidders long before the ceremony. Who Are We ? | About THISDAYOnLine.com | THISDAY People | Contact Us © Copyright 2000 Leaders & Company Limited

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